Seabridge Gold PEA Submits Autonomous Underground Mine Plan to KSM in British Columbia

The PEA primarily describes an underground block mining operation supplemented by a small open pit, and is expected to operate for 39 years with a maximum mill feed production of 170,000 tpd, demonstrating that KSM has an operating “long-lived multi-generational” mining. project potential with flexibility to vary metal production.

The recently updated PFS, meanwhile, contains only an open pit mine plan with a 33-year mine life limited to the Mitchell, East Mitchell and Sulfurets deposits. None of the mineral resources incorporated in the PEA have been utilized in the PFS mine plan.

“KSM is really an entire district hosting a nest of potentially economic porphyry deposits with different characteristics. In our updated PFS, we have focused on gold-rich deposits due to their faster return on investment and the relative simplicity of open pit mining only,” said Seabridge CEO Rudi Fronk. , in a press release. “However, we are keenly aware that a deep deficit of mined copper is set to loom on the horizon as the world becomes electrified and moves towards a net-carbon-free future.”

“We therefore wanted to highlight KSM’s potential to help address this need more fully than the mine plan contained in our updated Preliminary Feasibility Study. We believe this opportunity will be attractive to a potential partner.

The PEA envisions a subsurface-focused mining plan beginning with the development of an underground block mine at Iron Cap complemented by a small open pit at Kerr. Development of an underground Kerr block mine begins when development at Iron Cap winds down. Feeding the Kerr Block Mill begins six years after the start of feeding the Iron Cap plant. Feed delivery from plant to processing plant is increased to 170,000 tpd by year 12.

Throughout the life of the mine, which spans 39 years, the mill feedstock will be sent to a flotation concentration circuit. The flotation plant will produce a gold/copper/silver concentrate and a separated molybdenum concentrate which will be transported by truck to a nearby seaport in Stewart, British Columbia.

In total, about 4.3 billion pounds of copper, 14.3 million ounces. gold, 68.2 million oz. of silver and 13.8 million pounds of molybdenum from 1.7 billion tons of mill feed will be produced. Under the base case, the mining project has an estimated net present value after taxes (5% discount) of $5.8 billion and an internal rate of return of 18.9%. Its total capital cost will be approximately $14.25 billion and the payback period is 6.2 years, based on $18.5 billion of free cash flow generated.

The 2022 PEA and PFS utilize previously disclosed KSM resource estimates totaling 5.4 billion tonnes grading 0.51 g/t gold, 0.16% copper, 2.4 g/t silver and 63 ppm molybdenum in the measured and indicated grade, plus 5.7 billion tonnes grading 0.36 g/t gold, 0.28% copper, 2.2 g/t silver and 33 ppm of molybdenum in the inferred category.

Bonny J. Streater